EXHIBIT 99.(a)
Florida Progress Corporation
Investor News
Analyst Contacts:
Mark A. Myers (813) 866-4245
Greg Beuris (813) 866-4442
[CORPORATE LOGO OMITTED]
Florida Power Files Report with Florida Public Service
Commission on Crystal River Nuclear Unit Outage
Update on Crystal River Nuclear Unit Restart Plan
ST. PETERSBURG, Florida, March 31, 1997 -- On February 20, 1997, the Florida
Public Service Commission (FPSC) established a separate docket to review the
extended outage at the Crystal River Nuclear Plant. The FPSC subsequently
established a schedule of key events and deadlines that begins with a
preliminary report on the outage and concludes with the issuance of a written
order from the FPSC containing its decision on this matter.
FPSC SCHEDULE FOR REVIEW OF CR-3 OUTAGE
March 19 Preliminary report on current outage at CR-3.
March 26 FPSC staff workshop on CR-3 outage.
April - June Florida Power and other parties file testimony.
July 10 Legal briefs filed.
July 24 FPSC's staff recommendation to the FPSC.
August 5 Agenda Conference - Decision by FPSC.
August 25 Written order issued by FPSC.
PRELIMINARY REPORT ON CURRENT OUTAGE AT CR-3
The report filed on March 19 was in response to the FPSC's request that Florida
Power explain the specific actions and circumstances that led to the shutdown of
the unit and why Florida Power determined that it was necessary to keep the unit
shut down for an extended period. The report, excluding certain appendices, is
available on the internet on Florida Progress Corporation's homepage. The
address of the homepage is www.fpc.com. The following is a summary of the report
filed with the FPSC.
On September 2, 1997, the nuclear unit was taken out of service to repair a
rupture of an oil pipe in CR-3's main turbine lubricating oil system. The unit
would have returned to service in early October were it not for the discovery of
certain design basis issues related to the unit's emergency core cooling system.
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Florida Progress Corporation
Investor News -- Florida Power's
Crystal River Nuclear Plant
Florida Power determined that the unit must remain down to allow time to make
other equipment modifications to ensure that CR-3 is in compliance with
regulatory requirements governing emergency equipment safety margins under
hypothetical accident scenarios. One of the equipment modifications includes
increasing the electrical capacity of two diesel generators that are used in
emergencies to power equipment that would pump water into the reactor and the
steam generators in the event of a break in the reactor coolant system. Another
modification requires installation of equipment called cavitating venturis, that
are needed to ensure proper regulation of the flow of water under emergency
conditions.
As safety standards evolved over the last twenty years, all nuclear plants were
faced with decisions on how to meet NRC regulatory requirements. While some
utilities made extensive modifications, including significant upgrading of
emergency diesel generator capacity, Florida Power made less extensive changes
to CR-3's safety systems. Florida Power chose engineering approaches that
satisfied NRC regulatory requirements while minimizing both shutdown periods and
costs to its customers.
This approach worked satisfactorily until 1996 when it was determined that some
of the changes made by Florida Power in 1996 could not fully meet prescribed
safety margins under certain postulated emergency situations. Florida Power has
determined that the only way to meet the required safety margins under all
circumstances is to make the significant equipment modifications that were
started in October 1996 and are expected to be complete by the end of 1997.
Florida Power and CR-3 have received much adverse publicity regarding actions
and evaluations by the NRC, including placement of CR-3 on the NRC's "Watch
List". Florida Power has developed and implemented a management corrective
action plan which addresses all of the concerns expressed by the NRC through its
assessments. Placement on the NRC's "Watch List", which occurred on January 27,
1997, is not the reason for the outage and is not expected to lengthen the
shutdown.
FPSC STAFF WORKSHOP MEETING
On March 26, 1997, Florida Power management participated in a workshop scheduled
by the FPSC to allow its staff and any other interested parties the opportunity
to more fully understand the events which led to the current outage of the
nuclear unit. Florida Power discussed, among other things, the events which led
to the current outage and the decision to keep the unit shutdown.
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Florida Progress Corporation
Investor News -- Florida Power's
Crystal River Nuclear Plant
RESTART PANEL MEETING WITH NRC
On March 21, 1997, Florida Power met with the NRC restart panel and presented
its current plan for restarting the nuclear unit. The NRC was complementary of
the plan and indicated that if Florida Power adheres to the plan, regulatory
approvals will not prevent Florida Power from returning the unit to service by
the end of 1997. The St. Petersburg Times quoted NRC Regional Administrator Luis
Reyes as saying, "It's a very good plan," and told reporters that "The team you
saw out there today is very experienced and very knowledgeable."
CR-3 RESTART PLAN
Attached is a schedule which summarizes the restart plan presented to the NRC
restart panel on March 21, 1997. The critical path shown on the restart schedule
represents the estimated time requirement for work related to modifying the
emergency feedwater system and upgrading the emergency diesel generators.
Additional plant modifications related to other design basis issues are not
shown on the timetable since completion of these modifications will occur before
modifications to the emergency feedwater system and diesel generators are
complete.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: this news release contains forward looking statements related to the
restart of Florida Power's Crystal River nuclear unit by the end of 1997. These
statements involve risks and uncertainties that could cause actual results or
outcomes to differ materially from expectations. Key factors that have a direct
impact on the company's ability to return the unit to service before the end of
1997 include successful execution of the restart plan, actions of regulatory
bodies, absence of new plant modifications which extend the outage beyond 1997
and other factors described in the company's Securities and Exchange Commission
filings.
Florida Progress (NYSE:FPC) is a Fortune 500 diversified utility holding company
with assets of $5.3 billion. Its principal subsidiary is Florida Power, the
state's second-largest electric utility with about 1.3 million customers.
Diversified operations include coal mining, marine operations, rail services and
life insurance.
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Florida Power Corporation
Crystal River Nuclear Plant
1997 Restart Activities
Activities 1st Quarter 1997 2nd Quarter 1997 3rd Quarter 1997 4th Quarter 1997
Design & Licensing
Basis Review
Level 1 reviews XXXXXXXXXXXXXXXXXXXXXXX
Level 2 reviews XXXXXXXXXXXXXXXXXXXXX
Level 3 reviews XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Emrg. Feedwater
& Diesel Generator
(Critical Path)
Engineering XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Construction XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Testing XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Regulatory Review
and Approval
License Amendments XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
NRC Restart XXXX
Startup
System lineups, heatup
& reactor startup XXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Power escalation XXX